Philex Mining Corp., one of Southeast Asia’s largest gold and copper producers, said Thursday that first-half core net income dropped 47 percent to P702 million this year from P1.33 billion last year, weighed down by lower output at the Padcal mine.
Total tonnage milled for first half was at 3.531 million tons, lower by 4 percent as Philex continued to address the unscheduled breakdowns of the ageing equipment at the mill plant. First-half gold output was down 19 percent to 20,361 ounces while copper output fell 12 percent to 11.173 million pounds.
A slight improvement in gold prices continue to mitigate the impact of the softening copper prices. Prices for gold and copper in the first half of the year averaged at US$1,924 per ounce and US$3.91 per pound, respectively.
“Cautious optimism is still the name of the game,” said Philex president and chief executive officer Eulalio Austin Jr. “The first half of the year was challenging, no doubt, but we are still confident that, with the Silangan Project and other prospects in the pipeline, the situation would improve. We are all geared up for mining opportunities moving forward,” he added.
Operating costs and expenses for the first half was flat at P3.338 billion.
Despite the current challenges in Padcal mine operations, Philex said it is still on track with development works on the Silangan Project in Surigao del Norte. The construction of the east decline portal has been completed and the arrival of tunnelling equipment, such as low profile loaders, jumbo drill and accessories allowed for the commencement of tunnel works as programmed.
The company said it is also in the final stage of negotiation and documentation of the syndicated debt facility to complete the funding requirement of the Silangan project. The debt syndication is spearheaded by BDO Capital and Investment Corp. and targets to raise a minimum of US$100 million. This new credit facility completes the full funding requirement for the Silangan Project after the stock rights offering last year and the capital infusion from the company out of its cash reserves.
